(IFR/RLPC) - Charter Communications has lined up debt financing of over US$31bn to finance its long-expected acquisition of Time Warner Cable, and is expected to launch the loans and bonds backing the deal imminently to lock in cheap borrowing costs.

Signs of indigestion appeared in the high grade market on Thursday, as investors neared the tail end of a record May and what is likely to end up being the busiest month ever for high-grade bond issuance.

A bank proposal to pool corporate bonds of a single borrower into an ETF-style “trust” to help solve the credit markets’ chronic illiquidity problem is being circulated among issuers and investors, and finding some support.